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United India Insurance Company Limited vs Sridharagadde Basappa And Anr. on 2 July, 2001 cites

New India Assurance Co. Ltd. vs Raja Naika And Another on 19 February, 1992

Learned Counsel for the respondent raised a preliminary objection regarding the maintainability of the appeal. According to him, the essence of the attack made by the appellant relates to the quantum of compensation awarded and, therefore, the insurer is not entitled to challenge the same by filing the appeal. He relied on the decision of this Hon'ble Court in New India Assurance Co. Ltd. v. Raja Naika . The reasoning therein is that the policy of insurance is issued under the Motor Vehicles Act and Section 149 of the said Act, restricts the grounds of contention of the insurer in a proceeding claiming compensation. Section 146 of the M.V. Act that no motor vehicle shall be plied in a public place unless it is insured. Therefore, the liability of the insurer has directly arisen out of the Motor Vehicles Act. If the proceedings for compensation are initiated under the Motor Vehicles Act with respect to the liability created under the insurance policy then Section 149(2) will step in and prevent the insurer from urging any contention other than those mentioned therein. Therefore, it cannot be said that, if proceedings are initiated under the Workmen's Compensation Act, 1923, with respect to the same liability under the very same policy, the insurer has unbridled right to urge all contentions. The restriction placed by virtue of Section 149(2) is on the rights of the insurer of the policy referred to under Section 146 and that restriction should apply irrespective of the Forum. Hence, the preliminary objection of the learned Counsel for the respondent should be upheld.
Karnataka High Court Cites 17 - Cited by 16 - N Venkatachala - Full Document
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